Options for Newbies -(Help Me Obi-Wan-Kenobe) Message Board

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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe)

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To: Copeland who wrote (874)	6/9/1998 1:21:00 AM
From: Girish Patel	Read Replies (1) of 2241

Each contract represents 100 shares of underlying security. Therefore, 1000 puts represent sale options on 100,000 shares. If they are puts on something like IBM (about 120), then you control securities worth $12,000,000.00. A large sum by anyone's standard. (I hope you will be worth more than that as a cardiologist). I do not think that your GF is qualified to hold 1000 puts contracts. Unless you are a registered securities broker, there is a limit on how many contracts you can trade. It seems that you are talking about puts on 1000 shares. That will make it 10 contracts. A mistake easily made- there is a difference in trading shares (actual number) and options (100 shares per contract). Good Luck Girish Patel, M.D.

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